Baird Lowers its Price Target on Datadog, Inc. (DDOG) to $180 and Maintains an Outperform Rating

Jeff Lewis

Sat, February 21, 2026 at 8:10 PM GMT+9 2 min read

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  DDOG

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Datadog, Inc. (NASDAQ:DDOG) is among the 12 Best Tech Stocks that Beat Earnings Estimates.

On February 11, 2026, Baird lowered its price target on Datadog, Inc. (NASDAQ:DDOG) to $180 from $220 and maintained an Outperform rating after updating its model following solid results. Baird highlighted positive, broad-based growth acceleration.

Also on February 11, 2026, Canaccord lowered its price target to $185 from $210 and kept a Buy rating, noting the company accelerated revenue for the third consecutive quarter with 29% year-over-year growth in the quarter and 28% for the year. Canaccord said continued wins with AI-native companies provide a compelling response to concerns about Datadog’s relevance as GPU workloads increase as a share of overall compute.

Baird Lowers its Price Target on Datadog, Inc. (DDOG) to $180 and Maintains an Outperform Rating

On February 10, 2026, Raymond James analyst Adam Tindle lowered his price target to $170 from $205 and maintained an Outperform rating following Q4 results that exceeded key metrics and initial 2026 guidance that was just above “buyside bogeys.” Adam Tindle said the target is based on 12-times his 2027 sales estimate, a premium to the 20%-plus software growth group’s high single-digit multiple, but a discount to CrowdStrike (CRWD) and Cloudflare (NET).

On February 10, 2026, Datadog reported Q4 revenue of $953M versus consensus of $918.2M. CEO Olivier Pomel said the company is “pleased with our strong execution in fiscal year 2025,” citing 28% year-over-year revenue growth, $1,050 million in operating cash flow, and $915 million in free cash flow. He added that the company delivered over 400 new features and capabilities during 2025 to support cloud migration and next-generation AI deployment.

Datadog, Inc. (NASDAQ:DDOG) operates an observability and security platform for cloud applications in the United States and internationally.

While we acknowledge the potential of DDOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Most Profitable Undervalued Stocks to Buy and 11 Best Mining Stocks to Buy According to Wall Street.

Disclosure: None.

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